Audi will challenge Tesla in 2017 with an electric-powered crossover, CEO Rupert Stadler told Bloomberg.
The new model will be Audi's first mainstream all-electric vehicle, and marks a change of course by the company. Audi had balked at introducing dedicated electric vehicles unlike BMW, which makes the battery-powered i3 city car.
"Our engineers are working" on an electric car that will meet U.S. regulations for a zero-emission vehicle, Stadler said. "It's probably going to be a crossover, but development work is still ongoing."
Tesla has emerged as a viable competitor to German luxury automakers. The EV maker plans to start deliveries of the Model X crossover in 2015. Audi has focused on developing electrified versions of existing models to keep a lid on costs.
Next year, Audi will introduce a battery-powered variant of the $115,900 R8 sports car, which will follow the start of deliveries of the plug-in hybrid A3 e-tron hatchback this year.
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